WINNIPEG, Manitoba--The ICE futures canola market was showing signs of running into resistance to the upside during the week ended Dec. 8, as speculators booked profits on some of their large long positions. However, the general uptrend remains intact despite the minor correction.

While bouts of consolidation were not unexpected, "the trends are still upward and pointing higher," said David Derwin, commodities investment adviser with PI Financial in Winnipeg.

"One thousand dollars is a nice big round number that will act like a magnet from both sides," said Mr. Derwin. The January contract settled at C$1,010.70 per tonne on Dec. 8, while March canola was at C$982.80.

Losses in Chicago Board of Trade soyoil futures pulled canola away from its highs during the week, but Mr. Derwin expected the Canadian oilseed would remain stronger relative to other vegetable oils due to its own supportive fundamentals.

"Canola is in a world of its own," said Mr. Derwin, adding "we have very tight stocks... and unless we have very good yields and growing conditions, it will still be tight (in 2022/23)."

With prices as high as they are, Mr. Derwin noted that canola could still see large price swings without influencing the overall uptrend.

Source: Commodity News Service Canada

Write to Phil Franz-Warkentin at news@marketsfarm.com

(END) Dow Jones Newswires

12-08-21 1650ET